Consolidated Biofuels Retains New York Investment Banking Firm

DALLAS--Jan. 4, 2006--Consolidated Biofuels, Inc. (OTC:CBIO), an alternative fuel company, announced today that it has retained Lane Capital Markets (LCM) to act as its exclusive financial advisor and investment banker with regard to financing currently being considered by the Company. LCM will be the exclusive advisor to the company for the completion of its institutional funding and will also manage the existing retail financing through a syndication of broker dealers.

Christopher Sharon, President and CEO, stated, "We are excited to have LCM's participation. Their expertise and credibility will greatly aid the Company as we complete our funding for the construction of our biodiesel facilities."

About Consolidated Biofuels

Consolidated Biofuels is planning to construct and operate six 30 million gallon production facilities and is dedicated to a cleaner America by increasing the availability of biodiesel fuel nationwide and expanding the effort to reduce pollution caused by petroleum diesel fuels.

Through tactical relationships and experienced management, Consolidated will amalgamate its resources to greatly enhance the facilities' capabilities, allowing the Company to realize economies of scale advantages. Additional advantages encompass improved management systems and advanced technical solutions.

For further information visit: http://www.consolidatedbiofuels.com.

About Lane Capital Markets, LLC

Lane Capital Markets, LLC is a partnership investment bank whose professionals have executed over 100 transactions including private placements, mergers & acquisitions, and PIPEs throughout the past 10 years.

For further information visit: http://www.lanecapitalmarkets.com.